The "best PMS in India" is the one you can evaluate properly
Portfolio Management Services (PMS) give investors with ₹50 lakh or more a professionally managed portfolio held in their own demat account. There is no single "best" PMS — only one that fits your goals, risk appetite and the fees you are willing to pay. This guide shows you how to judge one.
- General information only — no rankings
- SEBI rules on fees and exit loads explained
- Speak to us in Dehradun, English or हिंदी
Look beyond headline returns: fees, risk and consistency matter
What is a Portfolio Management Service?
A Portfolio Management Service is a SEBI-regulated arrangement in which a registered portfolio manager builds and runs a portfolio of shares, bonds and other securities for you. Unlike a mutual fund, where your money is pooled with thousands of others and you own units, a PMS portfolio is held in your own demat account. You can see every stock you own, every trade made, and every rupee of fees charged.
That ownership is the core of the PMS proposition. It allows a portfolio to be shaped around one investor — for example, avoiding a sector you already have exposure to through your business — and it gives full transparency. The trade-off is a high entry ticket, more complex fees and a tax bill that follows every transaction.
SEBI's minimum investment for a PMS is ₹50 lakh per client. It can usually be brought in as money, existing securities, or both. A registered custodian holds the assets, and the portfolio manager must give you a Disclosure Document and sign a client agreement before managing your money.
PMS at a glance
- Minimum investment ₹50 lakh (cash or securities)
- Securities held in your own demat account
- No upfront fees allowed by SEBI
- Exit load capped at 3% / 2% / 1% in years 1–3
- Direct onboarding route available from every portfolio manager
- Gains and dividends taxed in your own hands
Discretionary, non-discretionary and advisory
SEBI's regulations recognise three ways a portfolio manager can work with you. They differ mainly in who makes the final buy-or-sell decision.
Discretionary PMS
The portfolio manager decides what to buy and sell, and when, within the investment approach you signed up for. You do not approve each trade. This is the most common form of PMS in India.
Non-discretionary PMS
The portfolio manager suggests trades, but each one is executed only after you approve it. You keep the final say, which suits investors who want to stay closely involved — and who can respond quickly.
Advisory PMS
The portfolio manager only gives recommendations. You decide whether to act on them and place the trades yourself, through your own broker. Responsibility for execution stays entirely with you.
Six questions to ask before choosing any PMS
Search for the "best PMS in India" and you will find lists sorted by last year's returns. Those lists change every year, and a single good year tells you little about the next one. A sounder approach is to judge each strategy — SEBI calls it an "investment approach" — on the same set of questions.
1. How has it done against its benchmark, over full cycles?
Portfolio managers must report performance using the time-weighted rate of return (TWRR), net of fees and expenses, and the Association of Portfolio Managers in India (APMI) publishes this data alongside benchmark returns. Look at three-, five- and ten-year periods, and at difficult years such as market falls, not just the latest rally. Consistency relative to the benchmark matters more than one standout number. Past performance may or may not be sustained in future.
2. What will it really cost you?
Add up the fixed fee, any performance fee, custody, brokerage and fund accounting charges. Then compare the total with what a mutual fund's expense ratio would cost for similar exposure. Fees are certain; returns are not.
3. What is the investment style?
Large-cap or small-cap? Growth or value? Momentum or buy-and-hold? A style that suits a 35-year-old professional in Delhi NCR may be wrong for a retired couple in Dehradun who need stability. Make sure the style matches your time horizon and how much volatility you can live with.
4. How concentrated is the portfolio?
Many PMS strategies hold far fewer stocks than a diversified mutual fund. Concentration can help when the picks work and hurt badly when they do not. Check the number of holdings, the weight of the top five, and sector exposure.
5. Who manages it, and how stable is the team?
Look at the portfolio manager's experience, the depth of the research team, and whether the person who built the track record is still running the strategy.
6. What does the Disclosure Document say?
Every portfolio manager must give you a Disclosure Document covering fees, risks, the investment approach, past performance and any disciplinary history. Read it in full along with the client agreement. If something is unclear, ask in writing before you sign.
How PMS fees work, and what SEBI caps
SEBI has tightened PMS fee rules to protect investors. Every fee must be spelt out in the client agreement.
| Fee element | How it works | SEBI rule / what to check |
|---|---|---|
| Fixed fee | A percentage of assets charged every year, whether returns are good or bad | Compare it with the cost of similar mutual fund exposure |
| Performance fee | A share of profits above a hurdle rate, charged only when the portfolio crosses its previous peak (high-water mark) | Check the hurdle, the profit share and how often it is calculated |
| Hybrid | A lower fixed fee plus a performance fee | Model both good and poor years before you choose |
| Upfront fee | A one-time charge at entry | Not permitted by SEBI |
| Exit load | Charged if you withdraw early | Capped at 3% in year 1, 2% in year 2, 1% in year 3; nil after that |
| Operating costs | Custody, brokerage, fund accounting, audit | Ask for the total expense charged in a typical year |
PMS vs mutual fund: the key differences
Both are SEBI-regulated and professionally managed. The structure, cost and tax treatment are very different.
| Feature | Portfolio Management Service | Mutual fund |
|---|---|---|
| Minimum investment | ₹50 lakh | Often ₹100–₹500 for a SIP |
| Ownership | Securities in your own demat account | Units of a pooled scheme |
| Customisation | Possible within the investment approach | Same portfolio for every investor |
| Diversification | Often concentrated | Typically broader, with SEBI limits |
| Fees | Fixed, performance-based or hybrid, plus operating costs | Total expense ratio, capped by SEBI |
| Taxation | Each trade taxed in your hands | Tax arises only when you redeem units |
| Transparency | Every holding and trade visible | Portfolio disclosed monthly; NAV daily |
| Exit | Exit load up to 3% in year 1; securities sold or transferred | Redeem units; exit load as per scheme |
For most investors, a well-chosen set of mutual funds through SIP investment already delivers diversification and professional management at low cost. PMS becomes worth studying when a portfolio is large and the investor wants something mutual funds cannot provide, such as direct ownership or a specific style.
How PMS is taxed in your hands
Because you own the securities directly, each sale is your own capital-gains event. Under the Income-tax Act, 2025 (in force from 1 April 2026), gains on listed equity shares held for 12 months or less are short-term and taxed at 20%; gains held longer are long-term and taxed at 12.5% on gains above ₹1.25 lakh a year. Dividends are added to your income and taxed at your slab rate.
A strategy that trades often can therefore produce a steady stream of short-term gains, and a tax bill, even in years when you withdraw nothing. In a mutual fund, buying and selling inside the scheme does not create tax for you; you pay only when you redeem. Whether PMS fees can be set off against capital gains has been contested, so ask your tax professional before relying on it.
Who PMS may suit
- Investors with a large investable surplus who can commit ₹50 lakh without strain
- A long horizon — ideally five years or more — and tolerance for volatility
- Those who value direct ownership and full visibility of holdings
- Investors willing to read and compare Disclosure Documents
Who it may not suit
- Anyone who may need the money within a few years
- Investors for whom ₹50 lakh is most of their savings
- Those who prefer simple tax and paperwork
- Anyone choosing purely on last year's returns
SEBI's July 2026 proposal: a mutual-fund-only PMS at ₹25 lakh
In July 2026 SEBI published a consultation paper proposing a new kind of PMS that would invest only in mutual fund units, with a lower minimum of ₹25 lakh. The idea is to let portfolio managers build and rebalance a portfolio of funds for investors below the ₹50 lakh threshold.
PMS in Dehradun and Uttarakhand
Investors in Dehradun, Haridwar, Rishikesh and across Uttarakhand can access PMS just as investors in Mumbai or Delhi NCR do: onboarding is largely digital, and the portfolio sits in your own demat account. What is harder to find locally is a plain explanation. If you are weighing a PMS, we are happy to sit with you at our Ghanta Ghar office and walk through how fees, benchmarks, taxation and Disclosure Documents work, so you can ask the portfolio manager better questions. We will not suggest a provider.
If your portfolio is larger still, read our guide to Alternative Investment Funds (AIFs). For steady income, see corporate bonds investment, or compare every option on our investment options in India page.
Have questions about how PMS works?
Request general information or speak to us at Ghanta Ghar, Dehradun. We explain the concepts; we do not offer or recommend any PMS.
Frequently asked questions
What is the minimum investment for PMS in India?
SEBI sets the minimum investment for a Portfolio Management Service at ₹50 lakh per client. It can usually be brought in as cash, as existing shares and securities, or a mix of both, subject to the portfolio manager's acceptance. In July 2026 SEBI released a consultation paper proposing a mutual-fund-only PMS with a ₹25 lakh minimum, but that is only a proposal and is not in force.
Which is the best PMS in India?
We do not rank or name PMS providers or strategies. A portfolio manager that suits one investor can be a poor fit for another. Compare the strategy's time-weighted returns against its benchmark over several years and full market cycles, check the fee structure, the investment style, how concentrated the portfolio is, who manages it, and read the Disclosure Document carefully.
Is PMS better than mutual funds?
Not automatically. PMS offers a customised, often concentrated portfolio in your own demat account, but with higher minimums, different fees and more tax events. Mutual funds offer diversification, lower minimums, SEBI-capped expense ratios and tax only on redemption. Many investors are well served by mutual funds alone; PMS is an option for larger portfolios with specific needs.
What fees does a PMS charge?
Portfolio managers may charge a fixed management fee, a performance fee on gains above a hurdle and a high-water mark, or a hybrid of the two. Custody, brokerage and other operating costs are also charged. SEBI does not allow upfront fees, and exit loads are capped at 3%, 2% and 1% in the first, second and third year. Every fee must be disclosed in the client agreement and Disclosure Document.
How is PMS taxed?
Because the securities sit in your own demat account, every buy and sell is treated as your own transaction. Capital gains and dividends are taxed in your hands under the Income-tax Act, 2025, so a PMS with high portfolio turnover may create more taxable events than a mutual fund, where tax arises only when you redeem units. Speak to your tax professional for your situation.
Can I invest in PMS directly without a distributor?
Yes. SEBI requires portfolio managers to offer a direct onboarding route, in which no distribution fee is charged. You can approach the portfolio manager directly and sign the client agreement with them.
Does Anika Investments distribute PMS?
No. Anika Investments is an AMFI-registered Mutual Fund Distributor and is not registered with APMI as a PMS distributor. This page is general information to help you understand the product. We are happy to explain the concepts, but we do not offer, sell or recommend any PMS.